Homeowners insurance cost on the rise in Florida

Homeowners insurance is getting more expensive in Florida, and fraudulent water damage claims are to blame.

What's happening more often is dishonest contractors are taking advantage of what are called "assignment of benefit" forms, or AOB's. When a homeowner signs this form, they give that contractor the right to deal with their homeowners insurance directly.

"Everyone has told me that they're seeing a larger number of water claims and those claims are being inflated," said Cape Coral insurance agent Mark Pollock.

In fact, according to the Florida Office of Insurance Regulation, there were more than 28,000 AOB-related lawsuits in the state last year.

"In many cases, the few that we've had in our office, the insured is not even aware of what they've signed," Pollock said.

Because of the increased fraud, Florida homeowners will likely pay hundreds of dollars more for their coverage in the coming years. The Florida Office of Insurance Regulation said homeowners' insurance will increase 10 percent per year going forward without AOB legislation reform.